Vornado had leased 45,000 square feet of retail space in the hotel at 1535 Broadway prior to the sale. It signed a 20-year lease for the property in 2012 and agreed to spend up to $140 million to expand it. The lease also gave Vornado the option to buy the space. The hotel real estate investment trust announced the sale on Monday.
The Times Square hotel is the second largest in Manhattan with 1,919 rooms. It is behind only the 2,076-key Hilton at 1335 Sixth Avenue.
Host Hotel & Resorts also recently closed on its sale of the W New York at Union Square for $171 million to Westbrook Partners. Westbrook paid $20 million less for the hotel than what Host Hotels & Resorts had paid in 2010.
After a rough start to the year, hotel REITs have recently bounced back. The industry has also seen consolidation throughout the year — most recently Pebblebrook Hotel Trust’s $5 billion-plus acquisition of LaSalle Hotel Trust.